Centre to lift temporary curbs on fuel sale amid West Asia conflict
The Centre has decided to lift temporary restrictions on the sale of petrol and diesel from July 1. This ends emergency measures introduced earlier this month to safeguard domestic fuel supplies amid disruptions led by the US-Israeli war on Iran and the closure of the Strait of Hormuz.
The move will also end the cap on the diesel quantity that can be sold to a single vehicle in a day at retail fuel stations, reflecting an improvement in the country’s fuel supply situation.
In an order issued on Monday, the government said it had reviewed the prevailing supply situation of petroleum products and concluded that the restrictions were “no longer necessary in the public interest.” It consequently withdrew the June 12 notification with effect from July 1, 2026.
The curbs, imposed as a precaution against potential supply shortages, had barred commercial consumers from buying petrol and diesel at retail fuel stations. Authorities had also placed a daily limit on diesel purchases to ensure adequate availability for the general public. The curbs were imposed amid fears that the US-Israeli war on the Gulf could disrupt global energy supply chains and affect fuel availability.
The order stated that the temporary measures, introduced on June 12 under the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, had been imposed to regulate the sale and distribution of petrol and diesel through retail outlets operated by Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).
According to the government, the restrictions were considered “necessary and expedient in the public interest to maintain supplies of Motor Spirit (MS) and High Speed Diesel (HSD) and secure their equitable distribution and availability at fair prices.”
However, following a review of the domestic fuel supply situation, the order said the Centre was “satisfied that it is no longer necessary in the public interest to continue with the directions contained in the said Order.”
The June 12 order had barred industrial, commercial and institutional consumers from purchasing petrol and diesel from retail fuel stations, directing them instead to source fuel from authorised bulk suppliers. Oil marketing companies and fuel retailers were also instructed to restrict bulk purchases from retail outlets for a period of up to 90 days.
The government had said the decision was taken in response to “the current prevailing geopolitical situation affecting certain regions of the world”, which had disrupted international petroleum supply chains, shipping logistics and the availability of petroleum products.
It also cited “extraordinary demand growth”, particularly for diesel, after bulk consumers shifted their purchases to retail fuel stations because of significant price differences. While retail prices remained lower, bulk consumers, including industries, telecom tower operators and firms using diesel for power generation, continued to pay market-linked rates.
